So, you want to get your goals on track, get your finances in order, save and invest (without loosing too much sleep), keep track of your goals and progress and know more about your options out there without dealing with your average go-getter, commission-based financial advisor? Well, you bought the right book. Being that the main problem is lack of information. Knowledge empowers you to make a decision without doubting yourself. Remember that there is no right or wrong decision, just the consequences of them. This process will help you know the options and their consequences so you can act accordingly, in order to accomplish your personal goals. By no means have I disregarded the advantages of advice and consulting, successful people often spend good amount of time and money getting advice from others. However, at certain stages of your life all you need a good foundation of information that will allow you to get further at a safe pace and come out in better shape than the current average person. This book will give you that. This book will provide you the tools so you can lay down the basic foundation blocks to build your future on. It will also show you the steps to follow so you can complete those goals and dreams with the least amount of bumps. I will not lie to you, it will take time, discipline and yes, some sacrifices on your behalf; but at the end progress will be measurable, clear and rewarding.

Financial Planning on Your Own

"The simple way to gain control of your money and financial independence"By David Mndez V.

AuthorHouse

Copyright © 2009 David Mndez V.
All right reserved.
ISBN: 978-1-4490-3109-1

Contents

PREFACE.................................................................................................XIACKNOWLEDGMENTS.........................................................................................XVABOUT THE BOOK..........................................................................................XVII2009 VERSION UPDATE.....................................................................................XIXINTRODUCTION TO OUR PRODUCTS............................................................................XXICHAPTER I The Financial Planning Process...............................................................1Introduction............................................................................................1The Financial Planning Steps (Figure 1).................................................................2A Basic Four-Step Process...............................................................................2Figure 1................................................................................................4Useful Facts............................................................................................4CHAPTER II Goal Determination and Gathering Data.......................................................7Determining Goals and Expectations......................................................................7Statement of Financial Position (Balance Sheet; Assets, Liabilities, and Net Worth).....................7Table 1.................................................................................................8Table 2.................................................................................................9Cash Flow Statement (Inflows and Outflows; Expenses vs. Income).........................................9Employee Financial Benefits.............................................................................10Time Horizons...........................................................................................10Tax Situation...........................................................................................10Table 3.................................................................................................11Figure 2................................................................................................12CHAPTER III Goal Strategy and Planning.................................................................13Cash Reserves and Short-Term Savings....................................................................13How Much Is Enough?.....................................................................................14Building Your Cash Reserve..............................................................................14Thirty Commonly Overlooked Deductions...................................................................14Where to Keep Your Cash Reserve.........................................................................16Setting Up Your Cash Reserve............................................................................16CHAPTER IV Risk Management (Insurance).................................................................19How Much Life Insurance Do I Need?......................................................................20Which Life Insurance Is the Best for Me?................................................................21Figure 3................................................................................................22Figure 4................................................................................................23Disability Insurance....................................................................................24Table 4.................................................................................................24Long-Term Care Insurance................................................................................25CHAPTER V Education....................................................................................27Life Insurance..........................................................................................28Federal Aid Programs....................................................................................28Coverdale IRA...........................................................................................28Roth IRA................................................................................................29529 plans...............................................................................................29Early Start Is the Key (Table 5)........................................................................29Table 5.................................................................................................30CHAPTER VI Retirement..................................................................................31Income Needs............................................................................................31The Right Saving Tools..................................................................................32Pension Protection Act of 2006..........................................................................34CHAPTER VII Asset Management...........................................................................37Know Your Risk..........................................................................................38Risk-Tolerance Questionnaire............................................................................39Table 6.................................................................................................47CHAPTER VIII Estate Planning...........................................................................49Objectives of Estate Planning...........................................................................50What Is an Estate?......................................................................................50CHAPTER IX Implementing and Monitoring Your Financial Plan.............................................53CONCLUSIONS.............................................................................................55DISCLAIMER..............................................................................................57ABOUT THE AUTHOR........................................................................................59FINANCIAL GLOSSARY......................................................................................61NOTES...................................................................................................87CD INTERACTIVE PRESENTATION COUPON......................................................................97

Chapter One

The Financial Planning Process

Introduction

Today there are more financial products and services than you can count. If you plugged the words "investments" or "financial planning" into Google you would receive millions of hits. The problem today is not in finding information, it's sifting through all of the information available to find the specific products or services that fit your needs, goals, and values.

Even with the abundance of information available on personal finances and money management, many people don't understand that financial independence is a goal they need to achieve. One thing that you must consider is that everybody out there in the financial industry has one goal and one only ... to sell. Eventually we all have to use...